Pub insurance customers could see the value added tax (VAT) on food and beer reduced to five per cent, following a push from the Campaign for Real Ale (Camra).
The European Commission has been in talks with representatives from the action group who are attempting to get the proposal for a five per cent reduction on food applied to beer too, reports the Publican.
If implemented, the move would bring UK pub insurance customers in line with those in Ireland, Greece and the Netherlands, who already have the tax rate on food.
John Grogan, chairman of the All-Party Parliamentary Beer Group, backs the campaign, saying pub insurance customers could see the food reduction in 2009.
"It would be a big boost to pubs who are already trying to sell credit crunch meals and getting rid of a big slice of VAT would help with that," he adds.
Camra has currently got more than 100 MPs to sign a petition which states that the tax on beer should not be increased in this year's budget.
